Wick’ed Candle Company – The Profit Season 3 Episode 15

Marcus Lemonis Vs Wick’ed Candle Company

The Company: Wick’ed Candle Companywicked-website

The Owner(s): Samantha Schacher-Biren and Mark Biren

Website: http://birenandco.com/

Intro

In this episode of The Profit, Marcus Lemonis visits Wick’ed Candle Company. Wick’ed Candle company is candle maker owned by husband-and-wife team Samantha Schacher-Biren and Mark Biren. It was founded in Los Angeles, California in 2010, the company has already made a deal with Urban Outfitter and Kitson. Their working motto is: Innovative. Luxurious. Timeless.

wicked-location

In their kitchen Mark and Sam conceived the first distinct candle. They were frustrated that they could not find a candle on the market that meets their wedding vision. Sam’s botanical knowledge and Mark’s amazing creative skills were fused to produce classy handcrafted candles.

Although some products of Wick’ed are already known and available on luxury stores, the company is not earning even a penny. The company is about to close and in debts. However, Marcus found a lot of potentials for this company. He has faith with the concept and the possibility of reaching the masses.

When Marcus visited their location, he was disappointed. Things are all over the place and no system is in place. He was dismayed that even with popularity, Wick’ed have no process and profit. When they checked the finances, the company needs help before things get worse.

Problems/Issues In The Business Found By Marcus

  • The business is very niche.
  • There was no business plan.
  • The finances are dwindling.
  • Lots of debts.
  • Does not have strategies to attract the masses.
  • Mark can hear but does not listen.
  • Mark does not trust anyone.
  • Mark troubles in processing feedbacks.
  • There are no full-time employees.
  • The candles need more scents.

The Deal

After Marcus checked the finances of Wick’ed, he decided to make a deal. There was a bit of argument when he called the company a “Startup” because it has no working capital, no cash in the bank and mounting debts. Marcus offered Sam and Mark $200,000 deal for 33% ownership.

wicked-deal

Marcus admitted that he does not normally invest a big amount for startups but he is confident that Wick’ed can go miles away. The couple happily accepted the proposal and the deal was sealed. Marcus is in total control and Sam will now handle the scent process.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Streamline the design process to appeal to masses.
  • Find a manufacturing partner so that Mark’s focus will be on design.
  • Find distributor or representative to promote the product in the market.
  • Make new designs and new products.
  • Simplify the design and concepts.
  • They went into kitting to double or triple the revenue.

During The Show…

After the deal was made, Marcus and the Biren couple went to the Candle Delirium to see what can work best for them. They were looking for the right and effective concepts that will attract customers and make more sales. Marcus told Mark that he should learn to listen from what others say and should not be too defensive.

wicked-candle

They also visit the Modern Candle to let them manufacture the candles to lower the production cost and lessen Mark’s burden. Unfortunately, Mark was not happy because he holds grudges with the company. After Marcus talked to him, they agreed to let the company manufacture the candles. After several weeks, Marcus was disappointed Mark did not follow up.

When every issue was settled, Marcus asked them to make a new collection. He asked them to make some changes to make it more appealing. He also suggested changing the company name from “Wick’ed” to “Biren & Co.” The couple gladly agreed.

Conclusion and Updates on the Business

To make all their perceived solutions work, they went to Market Ready to find appropriate kitting deal. They made it. They also went to Harper Group for a possibility of distribution. The company was impressed with the presentation and ideas and made a deal with the Biren & Co.

wicked-Marketready

Marcus was so proud of Sam and Mark. He was pleased with the big improvements happening with Mark. Biren & Co. has already changed their process and made a deal with a co-packer. Marcus truly believes that the company will make a big name in the candle industry.

wicked-harpergroup

I hope you enjoyed this review of this episode.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Thanks again.

Rob

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<< Visit the previous episode Standard Burger – The Profit Season 3 Episode 14 (The Return)

The Lano Company – The Profit Season 3 Episode 8

Marcus Lemonis Vs The Lano Company

The Company: The Lano CompanyThe-Lano-Company

The Owner(s): Miranda and Layne Coggins

Website: http://www.purecosmetics.com/

Intro

In this episode of the profit, Marcus Lemonis visits The Lano Company. The Lano Company is a small skin care and cosmetics business located in Kansas City, Missouri. This is a company that shares the benefits of natural ingredients in beauty products. The Lano Company promotes natural skin care and facial products with healthy vitamins that nourish the skin. The business is a wholesaler and a distributor of natural skin-care products such as LED lit, LED light up lip gloss, non-drying natural lip stain pens, long lasting lip plumper with mirror, and more.

The Lano Company started in 2005 by Miranda Coggins. Her husband, Layne Coggins, helps her manage the business. The business began when Miranda was looking for an all-natural product that will cure her chapped lips, while she was breastfeeding her daughter. Because she was unable to find one, she decided to make her own and shared it with her family and friends. The outcome was great and she decided to put up her own beauty product line.

Although the company is growing and getting popular, it is still struggling from a huge identity crisis. The company made and produced some products that no one wants. Their products are all around the place and they cannot focus on their core company concepts.

Problems/Issues In The Business Found By Marcus

  • Advertising and design is not trendy enough for its target audience.
  • Not all-natural ingredients.
  • The absence of lanolin in most products.
  • The business is not sustainable.
  • The manufacturing process is slow and obsolete.
  • Lack of direction.

The Deal

Marcus is convinced that The Lano Company has a lot of potential. When he visited the company’s facilities, he noticed that there are so many products that are not connected with the company’s major campaign which is the use of all-natural ingredients and lanolin. Miranda insisted on expanding her range by making products like brushes and tweezers.

Although some of the products earn a bit, many are not generating profit and are just stocked in the warehouse. Marcus pointed out that it was a waste of money. He wanted to encourage Miranda and Layne to stick to lanolin-products.

He initially proposed on investing $500,000 for 30% ownership. The Coggins rejected the proposal and suggested a $500,000 for 20% deal. For 10% annual equity and 20% profit share, Marcus agreed. He signed the check, shook hands and closed the deal.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Marcus suggests new product development.
  • New company logo and design.
  • Creation of a line of products containing lanolin.
  • Integrate the manufacturing process.
  • Have business partnership with big retailers.

During The Show…

In the earlier days of The Lano Company, Miranda got excited and overbought and overproduced items that are not really marketable. Marcus wants the business to be sustainable, so he suggested concentrating on lanolin-based products and to create a brand. He also recommended throwing all the factory-defects and the products that didn’t sell.

Marcus brought the Coggins to Birchbox to promote their product and hopefully win a partnership. They received incredible feedback and were inspired to re-invent and produce better concepts and products.

They also visited the Rejuvenol Laboratories to see the manufacturing facility and how will it help The Lano Company to manufacture their product easier, faster and cheaper.

Conclusion and Updates on the Business

After all the warehouse cleaning, having a new process in place and a selection of products containing lanolin are done, they are in the process of changing the logo. They agreed to have it simple, meaningful and more attractive.

Marcus brought Miranda to Parlor to sell the new set of products and hear interesting feedback. They also went to QVC to market their new collection. They received great comments and significant recommendations.

Luckily, The Lano Company got a monthly subscription from Katia. She is the co-founder of BirchBox. The Lano Company is enjoying a new success and bigger opportunities today. We wish them all the best.

I hope you enjoyed this review of this episode.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Rob

<< Visit the previous episode Precise Graphix – The Profit Season 3 Episode 7

Grafton Furniture – The Profit Season 3 Episode 6

Marcus Lemonis Vs Grafton Furniture

The Company: Grafton Furnituregrafton-site

The Owner(s): Steve and Mary Grafton

Website: http://www.graftonfurniture.com/

Intro

In this episode of The Profit, Marcus Lemonis visits Grafton Furniture. Grafton Furniture offers a complete custom capability, which executes designs and alters products to perfectly suit customers’ demands. They specialize in creating classic and contemporary furniture that fits any style.

It is located at Miami, Florida and was founded by a Cuban immigrant Esteban Grafton in 1964. It started as a small workshop limited to re-upholstery, but has grown into a design laboratory and production facility. Today, the furniture company is owned by Steve and Mary Grafton.

grafton-before

Grafton Furniture is a kind of “generation business” that struggles to survive in this modern and more demanding economy. For decades, it has produced and sold custom-made furniture that well-fitted the pocket of the wealthy individuals and it succeeded. But when the economic downturn occurred, the business was losing. Steve, son of Esteban and the second generation business owner suffered financial difficulties that resulted to condo and car seizures.

grafton-before1

Today, Grafton Furniture is doing all it can to keep the business profitable and continue providing jobs for its multicultural workforce. Steven, Steve’s son will soon manage the business and it’s crucial that he knows all the aspects. But, Steve is having trouble letting go of Steven and listening to his innovative ideas. Grafton Furniture is facing some challenges in maintaining the highest quality standard in furniture-making.

Problems/Issues In The Business Found By Marcus

  • The debts are piling up.
  • Father and son are struggling to work harmoniously.
  • Outdated facilities.
  • Limited group of clients.
  • Unorganized working place.
  • Absence of a clear working process.

The Deal

Marcus is pleased to look into the Grafton Furniture business system. He loves to help people from the place where he was raised and experienced all the hard work to keep a good business. He can relate to the Grafton Furniture business very well considering that he grew up in the place and it’s also a business manage by the generation. Marcus’ family used to run a Chevy dealership in the area and he wants to share all his learning to avoid business failures like what he experienced.

grafton-deal

Because Marcus has convictions that Grafton Furniture can do a lot to pay their debts, improve the system and compete in the bigger market. He offered the Grafton family a staggering $1,500,000 investment. He will provide the money for 45% ownership, full business control. He wants to use the money to pay the debts, provide working capital and help the family survive. It was not hard for the Graftons to agree and they accepted the offer. Marcus signed the check, Steve accepted and the deal was sealed.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Pay the debts.
  • Help the relationship between Steve and Steven improve.
  • Buy and install new machines and facilities.
  • Use the old showroom to widen the production area.
  • Renovate the entire place.
  • Produce furniture for different customer groups.
  • Introduce a new and highly efficient working process.

During The Show…

Marcus met all the staff to tell them about his investment and that he was happy to help all the people obtain success for all their dedications. He talked about transforming the place to be more conducive and the implementation of a new work process. He checked the Grafton Furniture showroom and was not impressed. He decided to give Steven the full responsibility regarding quality control and convert the area as an additional production space. They were able to find a new showroom in a better location.

Marcus proposed for the creation of three product categories namely:

  • The Quick Ship
  • The Semi-Customs and
  • The Customs.

He then asked Steve to design and build four different accent chairs that will represent the 4 American regions as part to the Quick Ship campaign.

Conclusion and Updates on the Business

Although Steve had difficulties of giving more control to Steven. He eventually realized its importance. Marcus told him that most second generation business owners have 60% failure rate, while third-generation businesses have 90% failure rate. Steven was given more trust and responsibility now and he is happy with it.

grafton-after

Marcus took the father-and-son team to DirectBuy to market their products. They wanted to promote and sell their “All American Dream Collection”. Marcus and the Graftons were happy receiving all the feedback from this. They were invited to join a conference to showcase their products and international skills in furniture-making. This opens then up to even more business opportunities.

grafton-after1building

Marcus gave the Graftons and the Grafton Furniture workers a bigger surprise with the new artistic company design painted on its building walls. We with this company all the best.

I hope you enjoyed this review of this episode.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Rob

>> Visit the next episode Precise Graphix – The Profit Season 3 Episode 7
<< Visit the previous episode FuelFood – The Profit Season 3 Episode 5

Worldwide Trailers – The Profit Season 2 Episode 4

Marcus Lemonis Vs Worldwide Trailers

The Company: Worldwide Trailersworldwide-trailer-site

The Owner(s): Tom and Nancy

Website: http://www.customconcessiontrailer.com/

Intro

In this episode of the profit, Marcus Lemonis visits Worldwide Trailers. Worldwide Trailers is a company that manufactures and sells concession trailers located at Tampa, Florida.

They specialized in food trailers, manufacture cable splicing trailers, mortuary trailers, tailgate trailers, refrigerated trailers, emergency response trailers and restroom trailers. The business started by a former couple Tom and Nancy in 2001. Even if their personal relationship ended some years ago, they still remained business partners.

worldwide-trailers-before

Worldwide Trailers makes $4 million in profit in the earlier years, but this reduced to around $400,000. Marcus believes that if only Tom and Nancy understand the industry, the business can earn more than 10% revenue every year. Worldwide Trailers employs almost 20 employees.

Marcus firmly believes that Worldwide Trailers can make it big. However, Tom and Nancy’s constant disagreements and fighting get in the way. Nancy hardly separates her personal dealings from the business.

Problems/Issues In The Business Found By Marcus

  • Worsening business relationship between Tom and Nancy.
  • Small manufacturing plant.
  • Not enough number of workers.
  • 2 separate facilities that are miles apart.
  • Costly deliveries.
  • No inventory and checkout list.
  • No cost analysis and quality control.

The Deal

Marcus is confident that Worldwide Trailers can grow into 20-million-business or even bigger. He proposed a deal to Tom and Nancy. His initial proposal was $500,000 for 50% ownership. Tom liked the deal and he wanted to go for it, but Nancy was having second thoughts. She believes that the business and her shares are worth much more than what Marcus has offered.

worldwide-trailers-real-deal

Marcus then offers $700,000 so that $600,000 will go to the business, and Tom and Nancy will get $50,000 a piece. Everyone agreed, and the deal was made. The bank check was signed, and they shook hands.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Establish a sole facility in Georgia.
  • Introduce a new inventory system.
  • Make checkout list and improve quality control.
  • Create accurate and up-to-date reports.
  • Employ the right process in place and protect jobs of the workers.

During The Show…

Marcus announced to all Worldwide Trailers’ employees about the deal that he, Tom, and Nancy closed. He told them that changes in the process will be incorporated to achieve a higher efficiency level. Marcus brought an inventory group to Worldwide Trailers to do auditing of materials. It was discovered that the company lost $80,000 in inventory.

Marcus was trying to convince Nancy to move to Georgia to focus on running the business. He brought her to a potential new home. Unfortunately, Nancy has not made her mind yet. It is so hard for her to let go her beach house and believes that Tom will not move to Georgia either.

Conclusion and Updates on the Business

worldwide-trailers-confrontation

Sadly, because of Nancy’s failure to accept change and stay professional despite her personal issues with Tom, Marcus found it hard and impossible to help Worldwide Trailers. Nancy kept on insisting that she needs no one, and she can run the business like she did before.

When Nancy discovered that Tom’s girlfriend had been working with the company behind closed doors, she started a heated argument in front of Marcus. She even invited the employees to see the dispute. She first said that the deal was off. Afterwards, Marcus withdrew the deal, thinking that Tom and Nancy cannot leave their past behind. They cannot focus on Worldwide Trailers alone.

worldwide-trailers-walkout

Nancy tells Marcus she wants him, to which Marcus responds F U?!? as he walks away. Ahahahahahaha

I hope you enjoyed this review of this episode.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Thanks again.

Rob

>> Visit the next episode Tina & Michaels’ PRO-FIT – The Profit Season 2 Episode 3
<< Visit the previous episode Sweet Pete’s – The Profit Season 2 Episode 6

 

My Big Fat Greek Gyro NOW The Simple Greek – The Profit Season 2 Episode 17

Marcus Lemonis Vs My Big Fat Greek Gyro

The Company: My Big Fat Greek Gyro Now The Simple Greek

The Owner(s): Mike Ference and Kathleen Kamouyero-Ference

Website: http://www.thesimplegreek.com/

Intro

In this episode of the profit, Marcus Lemonis visits My Big Fat Greek Gyro. A small 5-locations gyros franchise that is looking to expand its business.

my-big-fat-greek-gyro-location

This McMurray Pennsylvania located business is run by husband-and-wife team Mike and Kathleen has seemed to lost their handle on  the business.

mike-kathleen-greek-gyro

So Marcus Lemonis goes in knowing that he would have to give a sense of direction and put a concrete plan into action to give the business a chance to grow.

Sons Andreas and Michael are now also helping to run the business and are in the process of buying the original location of my big fat Greek gyro.

Mike will like to expand the franchise business since it’s a good moneymaker. The franchisees pay USD10,000 upfront and an ongoing monthly royalty fee for using the brand. However, it looks like the franchise model is very dysfunctional and needs to be put right if the business is to succeed.

Problems/Issues In The Business Found By Marcus

  • Low quality food with little to no original Greek presence.
  • Serving expensive frozen food.
  • Unprofessional branding with the current trademark conflict.
  • Lack of leadership.
  • Under-performing franchises.
  • No help and assistance to franchisees.
  • Small tiny business location infrastructure and kitchen.

During The Show…

So we find out that Mike, is responsible for My Big Fat Greek Giro brand name and this is in a trademark conflict with another company using a similar name.

Sons Andreas and Michael are having friction with their step dad Mike about how to run the business. Marcus who has Greek origins, doesn’t understand why the restaurant doesn’t reflect the Greek culture as much as it should.

It looks like Mike shout at everyone and is trying to tone down the Greek heritage of Kathleen and her sons Andreas and Michael.

Marcus Lemonis sits down with Mike and Kathleen to discuss the state of the business. He finds out that my big fat Greek gyro has just recently set up the LLC for the franchise business. So even after running the business for over 10 years, My Big Fat Greek Gyro is a relatively new business when it comes to facts.

Mike tells him that in the most recent fiscal year, the parent location of the business generated revenue of $300,000 making in that profit of around $100,000. My big fat Greek gyro has no debt but lacks the cash flow. Marcus is impressed with the return on capital considering the states in which the business is.

The Deal

Marcus sits down with Mike and Kathleen to work out the deal. He is not happy with the total lack of support Mike provides to their franchisees. The business model needs a total makeover.

Kathleen ( who by now we know truly wants to invest everything into the business she loves) agrees with Marcus about dedicating more time to helping out their franchisees.

She feels held back and wants Mike to give her more of a free hand at running the business with the ideas she has.

The crux of the matter is that at the end of the day, Marcus really likes the financials of the business. It’s a money generating machine and with a little bit of tweaking, the potential to make money is huge.

Marcus offers My Big Fat Greek Gyro $350,000 for 55% of the parent company and full control. Mike counters he wants more, Marcus puts pressure on them and Kathleen agrees to accept Marcus’ deal.

They all agree to take Marcus’ check and the partnership begins.

The money will be invested in the franchise part of the business as that is where Marcus will make his returns from.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Create a new name and branding for the business
  • Reorganize the franchise
  • Update the menu to reflect more of the Greek culture and cuisine
  • Restructure the business
  • Add more fresh and authentic home-made food items
  • Get rid of frozen food items to maximize profit.
  • Install free Wi-Fi at the locations
  • Simplify the ordering process

Conclusion and Updates on the Business

After the deal Marcus takes Mike and Kathleen to meet all the franchisees to fixe the relationship and try to restore faith in them. He pledges to put as much money into the franchisee’s business to help them make money.

Marcus Lemonis believes that simplifying the process of the restaurants and making the ordering process more efficient is the best way forward. The location in Mount Lebanon was in the worst state so Marcus decides to try out the new business concept there first.

He renovates that restaurant at a cost $85,000 but it now fantastic. All of the locations will be renovated so they can all have the same look and feel ala McDonald’s.

the-simple-greek-mt-lebanon

Next, Marcus drops a shocker. He renames and rebrands the business “The Simple Greek“.

Kathleen hates the name, she says it kind of sounds pejorative to the Greeks. After a little bit of convincing she finally accepts that it looks nice but we see she still doesn’t really like “what it says”.

the-simple-greek

So the future looks very bright profitable for the new The Simple Greek gyros franchise. It now reflects the very high standard which will surely invite many more franchisees from all over the country into the business. This is what Marcus plans and it will be the way he makes his money back.

We wish The Simple Greek all of the best and will be following up with any new updates we find.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for checking us out..

Rob

<< Visit the previous episode ASL Sign Sales & Service – The Profit Season 2 Episode 16

ASL Sign Sales & Service – The Profit Season 2 Episode 16

Marcus Lemonis Vs ASL Sign Sales & Service

The Company: ASL Sign Sales & Service

The Owner(s): Anthony Leggio and Kristin Leggio

Website: http://aslservicesmb.com

Intro

In this episode of the profit, Marcus visits a one-stop shop sign manufacturing shop called ASL Sign Sales & Service located in Surfside Beach on the South Carolina coast.

asl-sign-sale-service

Created with the loan from Anthony’s father of around USD220,000, ASL Signs have both the infrastructure and machinery to manufacture and service:

  • Outdoor advertising Signs.
  • Banners.
  • For sale signs.
  • Signs on buildings.
  • Back-lit, front-lit and non-lit signs.

Anthony Leggio the owner, is a self-professed go-getter. He’s a go-go guy and incredibly ambitious. He wants to become anthony-asl-signsthe biggest signs vendor in the state, stop dealing with small mom and pop shops and go national. Is this episode going to be another delusions of grandeur situation?

ASL Signs as a business is doing pretty well thanks to its huge margins. In its 2nd year of operation, it generated a revenue of USD300,000 with a profit of around USD45,000. Antonio however is not satisfied and wants much more.

As the business already owns great infrastructure and machinery, Marcus believes that the real way to increase the business will be to work and think smartly, more efficiently and grow strategically.

Problems/Issues In The Business Found By Marcus

  • Total chaos in the sign showroom.
  • Personal finances to be sorted out
  • Lack of efficient leadership and know it all attitude
  • Disorganized business process from sales to production.
  • Short temper and disrespect by Anthony.

During The Show…

So even with all of his confidence it looks like Anthony doesn’t really know the exact steps to take in his business to create a functioning process. He didn’t even know what to do when a client came into the office asking for a refacing of his advertising sign. He looked totally lost at a sign of the potential customer.

To be fair, ASL Sign Sales & Service has a very clean financial situation with a lot of money in cash receivables and not too much debt. That is if you don’t count the USD200,000 investment from Anthony’s father.

Marcus is impressed with the growth and management of the business and I think it’s all thanks to Kristins’ management so it’s a shock to know that she doesn’t even have an equity stake in the business nor does she take a salary.

The Deal

Marcus sits down with Anthony and Kristin to find out why he was called to the seemingly healthy business. Anthony tells him of his expansion dreams. He was to tap into Marcus’s rolodex and influence to be able to get the bigger clients that he feels the business needs to explode.

Marcus reveals that he wants to get into the signs business simply because of how lucrative it is. The question is if Anthony’s business is the right one to partner with.

Marcus decides to hold off making a deal so he can look more into the business and see if he can change and improve the process. If he feels the time is right then he would offer ASL Signs a deal.

Looks like Marcus has learnt from his bad business experiences with previous episodes of the profits. He’s holding onto his money until he sees that investing is the right move.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Fix the process
  • Cleanup the highly cluttered business premises
  • Improve the presentation of the signs inside the shop.
  • Anthony has to delegate the right jobs to the right people

Conclusion and Updates on the Business

So Anthony just can keep his mouth shut even in front of a client and a potential sale. He tells Marcus that he wants neither a deal nor his money all he wants from him is his (signs) business.

Jeff, a previous client of ASL Signs contacted Marcus via Facebook. He warns Marcus about the bad reputation Anthony has in the small town and tells him he personally wasn’t satisfied with the work done by ASL Signs. Anthony even sued Jeff instead of refunding him (just USD600) for the sub-par work done.

Taking into account Anthony strong headed attitude and his short temper which got him into a heated discussion with Marcus. He even made Marcus drop the “Who Do You Think You Are?” bomb for the first time on the profits

Marcus calls together the key members of ASL Signs and tells Anthony that he will grant him his wish of not getting any money from him. He refuses to make a deal with Anthony and walks out the door.

Anthony breaks down and apologies to his family.

Too late now, because Marcus has walked out of the door and sometimes you don’t realize what you haven’t you lose it.

So the go getter ends up not getting anything this time.

I hope you enjoyed this review of this episode.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Thanks again.

Rob

<< Visit the previous episode Shuler’s BBQ Bar-B-Que – The Profit Season 2 Episode 15

>> Visit the next episode My Big Fat Greek Gyro NOW The Simple Greek – The Profit Season 2 Episode 17

Shuler’s BBQ Bar-B-Que – The Profit Season 2 Episode 15

Marcus Lemonis Vs Shuler’s Bar-B-Que

The Company: Shuler’s Bar-B-Que/BBQ

The Owner(s): Lynn and Norton Hughes

Website: http://www.shulersbbq.com/

Intro

In this episode of the profit Marcus Lemonis goes down south to meet Shuler’s BBQ.

A Latta South Carolina based all-you-can-eat barbecue buffet run by married couple Lynn and Norton Hughes. The name Shuler is however is of their adopted son and this is the legacy Norton and Lynn want to leave.

norton-lynn-shulers-bbq

Shuler’s BBQ serves Authentic South Carolina ribs, pulled pork and chicken. It has become a kind of the Mecca down south for all kinds of barbecue lovers. It attracts a lot of clientele who drive from very far in some cases just to sample its  southern home-made cooking.

shulers-bbq-location

Marcus sees huge potential for growth especially since the barbecue restaurant doesn’t lack the clientele.

Marcus is also very impressed with Shuler’s BBQ’s signature “little biscuit” and he immediately sees an opportunity to take this nationwide.

The business is profitable and generating a very comfortable life or its owners so Marcus just doesn’t understand why he was called.

Problems/Issues In The Business Found By Marcus

  • Restaurant too small for the amount of clientele it has
  • No credit cards accepted
  • Nosy family members wanting to take a piece of the pie
  • Lack of efficiency in the food serving process
  • Lack of control over the cost of food items

During The Show…

Enter Lynn’s creepy brother-in-law Ewell. This is where the story gets interesting. Ewell is supposed to be the marketing ewell-shulers-bbqgenius that wants to have a part of the business. He sees the massive opportunity to cash in on the hard work already done by Lynn and Norton.

Looks like Ewell made a couple of Facebook promotions and believes he is now marketing guru that deserves part of the business.

Marcus just doesn’t see the need for extra marketing when there is already a line of clients waiting to eat. He wants to build out the infrastructure to be able to accommodate all of the clients whose needs Shuler’s is currently struggling to meet.

Ewell laughs about not being able to cook and yet wants a part of a restaurant business. This stuff is not even funny. It simply the case of someone smelling free money like a rat smells cheese. If you think the planet popcorn episode had creepy characters, this episode blows it out of the water with Ewell.

Marcus tried to give a chance to Ewell by having him help out in the business as a manager/partner. Ewell however didn’t want to do this.

He wants to make a salary of over USD200,000 between him and his wife, but not do the work. This just cant happen, not on Marcus’s watch.

Norton knows this and is skeptical Ewell’s real intentions are good. He’s just going along with this because Ewell is the husband to his wife’s sister and so he can just kick him out and hurt his wife Lynn.

The Deal

So Marcus sits down with Lynn, Norton and Ewell to discuss a deal.

Marcus wants to build up the location to become a real attraction for all those looking for the highest quality barbecue in the area. He offers to put in USD500,000 for 40% of the business.

The money will go towards:

  • working capital
  • paying off the mortgage
  • to build out a general store which will sell Shuler’s BBQ products
  • to build a deck on the back of the restaurant to sit the overflow traffic.

Marcus however wants to be reassured that the property on which the restaurant sits is part of the deal. Marcus also wants the distribution rights for the Shuler’s BBQ little biscuits which he plans to expand across the nation.

As always Marcus needs hundred percent control of the business while he makes his changes. He believes that with his help, Lynn and Norton will finally be able to leave a really successful business to their son Shuler.

The family agrees to Marcus’s deal and the partnership begins.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Get rid of Ewell
  • Optimise the payment process to get rid of the long waiting lines.
  • Slightly raised the price of a meal at Shuler’s BBQ
  • Set up credit card payment processing and add another register.
  • Reduce the raw food costs
  • Mass produce and sell Lynn’s biscuits in shops and department stores across the nation

Conclusion and Updates on the Business

Marcus brings in his partner baker Kenny to help formulate a version of Shuler’s BBQ biscuits for the mass market. Though Lynn is not too happy about how the basic recipe will change, she goes along with the process.

Marcus goes on to make a deal with a butcher to get Shuler’s BBQ’s meat at a cheaper cost and this will go a long way to helping carve out more profits from the gross revenue.

Plans are made to build the store for the Shuler’s BBQ’s products and expand the deck which quickly materializes and looks beautiful. The new deck space at the back of the restaurant will guarantee expansion for the business.

shulers-bbq-deck

Let’s not forget this is the South and this is America, so Marcus builds a giant 130 foot American flag that can be seen for miles. This will become part of the attraction of the Shuler’s BBQ brand.

shulers-american-flag

The biggest victory for Shuler’s BBQ however was when Ewell abandoned his plans to come be a part of the business. Hiring a family member is already a very delicate situation.

Shuler’s BBQ dodged a bullet and got rid of a family member that wasn’t even motivated to help the business in its day-to-day activities.

Finally Marcus rewards the couple and Shuler with a trip to New York where he invites them to the grand reopening of Marcus’ Crumbs Bake Shop. He has a little surprise for Lynn and she is ecstatic when she sees her biscuits along with her watermelon cup cakes on the shelves of the store.

lynn-hughes-watermelon-cupcakes

The biscuits will be in all 26 Crumbs Bake Shop stores as well as in major grocery stores. This will not just be another revenue stream, it will also be a huge marketing strategy to bring back people to the Shuler’s BBQ restaurant in South Carolina.

Shuler’s BBQ’s future looks very bright and the dreams of Norton and Lynn to leave a thriving business for their son Shuler is taking shape.

So there you go. Another exciting episode of the profit comes to an end with a successful investment in a good family business.

We wish Shuler’s BBQ all the best.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Rob

<< Visit the previous episode Coopersburg Sports – The Profit Season 2 Episode 14

>> Visit the next episode ASL Sign Sales & Service – The Profit Season 2 Episode 16

Artistic Stitch Queens Vibe – The Profit Season 2 Episode 10

Marcus Lemonis Vs Artistic Stitch

The Company: Artistic Stitch/Queens Vibe

The Owner(s): Sal Loretta and Nicolo Meola

Website: http://www.artisticstitch.com/

Intro

In this episode of the profit on CNBC, Marcus Lemonis visits a Queens New York based embroidery and silk screening/printing business called Artistic Stitch. Founded by Sal Loretta and partner Nick Meola 18 years ago in Sal’s garage, the company is facing a huge identity crisis as Sal Loretta has created a sort of Mall/Sports complex.

artistic-stitch-basketball

The facility includes a basketball court, a baseball batting location, a clothes shop, a restaurant/pizzeria and lets not forget, a printing and embroidery production facility. With most of these facilities not producing a profit, Marcus believes that the company will not make it if it doesn’t come back to its roots which is in the printing business.

Artistic Stitch generates $2,000,000 dollars a year with the bulk of their revenue coming from uniforms, hats and custom shirt. Recently the company moved the business to a 28000 square foot ware house facility using Sal’s half a million dollar savings. To increase revenue and take advantage of all the free space, Sal decided to add a few new businesses to the location.

The sub-businesses are struggling to make a profit and the building acquisition and rebuild has sunk Artistic Stitch into a 1.5 million dollar debt hole. Marcus knows that there is money to be made in the embroidery business, so if the company doesn’t get their identity sorted out and start paying off their debts, they will truly become un-stitched.

Episode Main Review.

So Marcus arrives at Artistic Stitch and finds himself in the worlds weirdest mini mall. It’s crazy to find that the primary business (silk screening and embroidery) is shoved in a corner of the complex.

fabio-artistic-stitchHe meets Fabio, Sal’s brother in law and the manager of the embroidery production floor and he gets the tour of the floor. Sal comes to meet Marcus, tells him Fabio has been with him all 18 years and they started the business together. Sal is highly impressed with where the business is right now and maybe more impressed with the HUGE facility HE BUILT FOR IT. sal-loretta-artistic-stitch

Sal tells Marcus the business is generating revenue and that the problem is mainly the debt. He confesses that the bank managers look at him funny and refused him loans when he told them he wanted to build a mall/sports complex/restaurant etc. Looks like only Sal can’t see how weird all these really are. To Sal, it is a Multiplex of Businesses that will cater to all its clients’ needs once they com into the building.

Marcus tells him that its called a Mall. There ins’t a correct vertical integration in Artistic Stitch simply because the integrated businesses don’t connect/relate well to each other directly. Embroidery and silk screening has nothing to do with batting cages.

nicolo-meola-artistic-stitch Next Marcus meets Nick Meola in the sign shop, Sal’s 50-50 partner and sales representative. How much sales Nick generates we will find out later in the show. Though he looks like a shy and timid guy, Nick tells Marcus he loves selling and he loves talking to people and stuff.

So the signs printing part of the business generated $170,000 and the embroidery and silk screening part of the Artistic Stitch business make around 1.3 million dollars. With around 75% margins on both sections of the business, the gross revenue was almost $900,000.artistic-stitch-saverios

Marcus and Sal continue the tour and see the restaurant part of the business. Called Saverio’s, the restaurant generated around $300,000 last year. The restaurant was almost empty when Marcus visited it so its clear why it generates less than $1,000 per day in sales.

Next Marcus was shown into the sports section of Artistic Stitch which generates around $400,000 a year in sales. It’s incredible that Sal invested so much money into the sports complex. It is not generating a significant income but takes the majority of the business floor space as well as running costs.

Marcus is pissed to find out that all the other businesses in the complex don’t even generate half the income that the embroidery and silk screening part of the business generates. Well I am pissed too :). I might just need a coffee.

The rent for the building is around $17,000 a month for the grounds and empty building lease. Considering that Sal put in half a million to build the building out, it’s incredible that at this point, Sal still doesn’t understand how expensive running the sport complex is.

joane-artistic-stitch

After finding out from Joanne, Sal’s wife, that they have put all their money into the business and she is worried, Marcus understands that he will have to talk Sal out of his delusions of grandeur.

Next Marcus meets Giovanna, the accounts manager and asks her for a full balance sheet. He sits down with her and Sal to discuss the company’s financials and finds out that even though the embroidery and silk screening part of the business generates over $900,000 in gross profit, the revenue is used to support the expenses of all of Artistic Stitch. This leaves a smaller real profit of $100,000 a year.

Marcus finds out that there are other debts owed too. Outstanding construction debts, rents owed, credit cards, real estate taxes. So, even with the $100,000 in revenue, it is hard to service those debts and their respective interests and the business is essentially cash flow negative.

artistic-stitch-debts

Sal tells Marcus the sacrifices he makes month by month to keep the business running. He takes it as a personal crusade to keep his employees on the job.

Problems/Issues In The Business Found By Marcus

  • Unfocused business strategy
  • Huge and inefficient business facility.
  • A 50% partner whose role in the business is very unclear.
  • Waste of revenue supporting unprofitable sub-businesses.
  • Mistrust and secrecy

The Deal

Marcus sits down with partners Sal and Nick to make a deal. He finds out that after 18 years in business, Sal and Nick don’t have a clear agreement stating the details of their partnership contract.

It starts to look like Nick is that friend that comes on the ride and you have to keep around because he was there from the beginning all along. What Nick actually contributes to Artistic Stitch is still unclear to Marcus.

Marcus asks the partners to make him an offer on what they want him to invest in the business. Sal wants to clear the debt which totals just about $600,000. Marcus finds out that there is an option to buy the building for around 2.5 million dollars after 5 years.

They all believe the building is valued at around 5 million dollars. So it all looks like the real reason Sal invested too much into the building was to be able to have an asset he could buy at a below market price that is worth more money than he invested into it.

Marcus is worried Sal may be in it for the real estate play. All he needs to do is keep the business running long enough to be able to exercise his option to buy the building. His instincts tell him that Sal may be looking for an investor to help him do just that.

This is worrying. Does Sal and Nick really want to keep this business alive? Or are they just buying time till they can flip the building for millions of dollars. Marcus tells them he invests in small REAL businesses and he is not interested in the real estate play.

He is however interested in keeping the business running and its employees being on the job. He wants to know that Sal is equally committed to this as well.

Marcus offers Nick and Sal, $660,000 to satisfy the debt for 50% of the business and it’s building. He also wants 100% financial control of the business forever. In case the option gets exercised, Marcus will be the first to get his money back.

Sal is not happy with this. He wants to know how he will get back the money he invested into the business. Marcus tells him that since he will have 50% of the business, Sal can get a higher split of the rest which he has to share with Nick AND his brother in law FABIO. Fabio is Marcus’ insurance. He is the one in charge of the embroidery and silk screening part of the business which is highly successful.

Sal agrees to give Fabio 10% of the business shares. He will have 25% and Nick will have the remaining 15%. Nick is not happy about this. The fact of the matter is that Fabio, having been in the business with him and Sal since the very beginning is just as important (if not more) as him.

Marcus believes it’s generous to give Nick more than what Fabio gets. Nick agrees to make a deal. He didn’t really has a choice anyway.

artistic-stitch-deal-making

They all shake hands and Marcus gives Sal the check. That money will be used exclusively for the debts of the business. Sal is visibly relieved. The burden of debt is now off his shoulders and he wants to concentrate on getting the business back in shape and profitable.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Focus on the parts of the business that make money and cut out the parasites.
  • Share the equity and roles in the business in a clear and correct way.
  • Get the sales system in shape and open new corporate accounts.
  • Create a new brand for retail with its own clothes product line.

After The Deal…

After the deal is made, Fabio is ecstatic. He is happy to be finally recognized in the business with a share of the company.

Marcus now wants to focus on getting corporate accounts for the embroidery and silk screening part of the business. This will entail having a strong sales force. He finds out that the sales man Nick is not really that big of a salesman anyway. He can’t mention a client that he brought into the company. I think he is just caught in the moment or lost for words.

Most of the clients were brought in by Fabio and after almost messing up a heart wrenching sales pitch at the local fire station with Marcus, Nick is relegated to a commission per sale only salary status in the company. He agrees and I am not sure if he knows he may have just signed away almost all his salary??? In fact, Nick really appreciates it.

Next, Marcus closes the Artistic Stitch for renovations. He creates a new brand for the design and printing part of the business called Queens Vibe.

queens-vibes-logo

The beautiful new facility will now reflect their focus on the silk screening and embroidery part of their business. There will also be a retails space where clients can come in, design and order their own custom prints. Marcus recruited local Queens graffiti artists to spray the walls and give the premises the New York cool hip vibe.

In the next scene, Marcus again finds out that Sal may have lied a bit about the total debt amount. It looks like business credit card expenses were labeled as building expenses while in realty they were personal living expenses. He is not happy about this and when Sal comes clean about the cards being used to survive, Marcus tells him to be more honest with him in the future.

So Marcus gets to renovating the facility and he acquires a direct to garment printer for $27,000. This will be used for clients that want to come in and design and print out the results. This will enable local artists or small businesses to come and produce their own clothes line.

artistic-stitch-printer

Next scene, Marcus finds out that Sal is keeping information from his landlord to whom he owes $120,000 in arrears instead of $52,000. Marcus speaks to the landlord and after some drama with a certificate of occupancy, it’s all settled.

Marcus takes Sal to the park and speaks with him about all the lies and misinformation he’s been getting. Sal breaks down and tells him he is scared to lose everything and that by telling things how there really were, he was afraid he would lose the investment. In business however, numbers don’t lie. The 2 bury the hatchet and move on.

Conclusion and Updates on the Business

In the concluding scene, Marcus mentions that the retail section of Artistic stitch will now be called Queens Vibe and the company is already adding lots of new accounts, both small and corporate.

The lobby is now a retail store featuring the new Queens Vibes product line which is proving to be very successful. The design center is also doing well and is making the most of the basketball court.

queens-vibes-product line

So Marcus invested $660,000 plus over $100,000 in renovation costs takes the total investment to around $760,000. So things are looking promising but there is still a lot of work to do to finally see big success. Marcus says he will leave the business encouraged, but not totally satisfied.

Now that is what you call a cliff hanger.

I hope you enjoyed this episode as much as I did. There are still a lot of unanswered questions and I will try to keep this review updated.

Don’t forget to like us on facebook and share this review with your friends on social media. The share button it floating on the left side of your screen.

Also, leave your comments and join in the discussion about this episode and its characters.

See you again soon.

Thanks again for visiting.

Rob

>> Visit the next episode Swanson’s Fish Market – The Profit Season 2 Episode 11

Sweet Pete’s – The Profit Season 2 Episode 6

Marcus Lemonis Vs Sweet Pete’s

The Company: Sweet Pete’ssweet-petes-site

The Owner(s): Peter and Allison Behringer

Website: http://www.sweetpetescandy.com/

Intro

In this episode of the profit, Marcus Lemonis visits Sweet Pete’s. Sweet Pete’s is a candy store located at Hogan Street, Jacksonville, Florida. They specialize on handmade chocolates and candies. This is owned by husband and wife, Peter and Allison Behringer.

Peter grew up in the chocolate industry. In 1985, his mother opened a family chocolate business named Peter Brooke Chocolatier. After Peter finished college, he applied his own experience with the industry to enhance his chocolate and candy making skills.

Sweet-Petes-before

The business was doing fine at first. But in 2010, the family business was sold and Peter started the Sweet Petes’s candy shop. He applied his own expertise to create most of the company’s candies by hand. With only $10,000 as starting capital, the couple asked for help from a finance man, Dane Baird and here is where creepy things start happening.

What was thought as a solution at first, turned out of be a haunting nightmare for Sweet Pete’s. Peter and Allison felt they were like hostages to Dane. They had a $17,000 loss in 2013.

Problems/Issues In The Business Found By Marcus

  • The business is located in a sleepy residential neighborhood with little traffic.
  • The premises and workplace is small.
  • The kitchen is outdated.
  • Not enough manpower.
  • A business partnership gone wrong.
  • Sweet Pete’s unable to keep on the demands.

The Deal

After Marcus sees the shop, the people involved and the business process, he made some decisions on how to help Sweet Pete’s recover. He asked Allison and Peter what they want to happen as well as Dane. The Behringer couple is frustrated for doing all the work while getting nothing from their investments. Dane insisted that his efforts and contributions should be recognized. Marcus doesn’t see anything that Dane is claiming.

sweet-petes-deal

Marcus proposed to invest $750,000 for 50% share, while the Behringers will receive the other half of the shares. He wanted to invest the $250,000 as working capital, while the $500,000 will be spent on facilities. Dane disagreed with the deal, because he thought that his contributions are worth more. Marcus said that he and the Behrigners will give Dane 5% to 15% annual equity if Dane shows his commitment to Sweet Pete’s. Everyone agrees, Marcus signed the check and the deal was made.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Move to a business new location.
  • Improve the process and let the production be handled by other candy makers.
  • Build a commercial kitchen for more staff and supplies.
  • Rent a commercial kitchen space while they are renovating the new place.
  • Peter to handle more Candy making classes.
  • Eliminate or dilute Dane’s shares of the company.

During The Show…

After the deal was made, Marcus and Sweet Pete’s owners talked with the staff about the changes in the company. Marcus will have the 100% control of the company and he will introduce new ways and approaches to earn more revenue. He encourages Peter to get out of the kitchen and give more Candy demos because they are gaining 500% margin with this.

after

They rented a commercial kitchen to make their production bigger and meet all the demands. Marcus brought Peter and Allison to their new location. He showed then the new business motto: “The Sweetest Place on Earth.” Manpower and new website were also added.

Creepy Dane asked for $150,000 to leave the company, but no one is buying his offer. They found a new solution to eliminate Dane in the partnership with the Article 3 of Capitalization of the Company. Later, Marcus surprised everyone with 3 new candy vehicles.

Conclusion and Updates on the Business

Sweet-pete-after-place

Sweet Pete’s opened a new business location in Seminole Club. This location hosted numerous popular visitors like Presidents Teddy Roosevelt and John F. Kennedy. The company with help from Marcus renovated the property. Today, Sweet Pete’s is considered as one of the largest candy shops in US.

Nowadays, Sweet Pete’s produces different types of quality candies and chocolates. The new location has 2 big retail areas, an interactive gallery, a rooftop patio, a full restaurant and bar and a dessert bar. It can cater field trips, parties and events. Peter holds candy making classes which are a huge hit with children. The education team of Sweet Pete’s is now hosting hundreds of children every week.

Looks like Pete can finally focus on his business and success without any more drama. His enthusiasm and passion is now repaying him and his wife. Marcus as well :)

I hope you enjoyed this review of this episode.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Rob

Coopersburg Sports – The Profit Season 2 Episode 14

Marcus Lemonis Vs Coopersburg Sports

The Company: Coopersburg Sports

The Owner(s): Scott Pino

Website: http://www.coopersburgsports.com/

Intro

Hello and welcome to this episode review of the profit with billionaire Marcus Lemonis. If you’re new to the profit and want to get the quick grasp of what it’s all about then visit this page.

In this episode, Marcus visits a Coopersburg Pennsylvania based baseball novelty business called Coopersburg Sports.

Founded in 1991 by Scott Pino, the company used to be owned by Scotts dad who ran Coopersburg Handle Works. The official information on the website regarding the company is “COOPERSBURG SPORTS is a division of COOPERSBURG ASSOCIATES, INC., of Coopersburg, PA. Family owned and operated since 1791.” coopersburg-handle-works Coopersburg Sports has just struck-out with their key major league baseball client but its owner remains stubborn and has a hard time letting go of the past.

Marcus has to help refocus the business in the right direction or the game may well and truly be up. coopersburg-sports-license

Coopersburg Sports has a license with the major league baseball company to produce merchandise. The company is known for their mini bat which can be found in every major league baseball park. Back then business was great and the company was pulling in over $4 million a year in revenue with great profit margins.

In 2008 however, a major sporting goods company entered the novelty market and almost immediately took over half of Coopersborg sports’ business. Today Coopersburg Sports operating in an old and outdated facility using very chaotic business process.

Scott has brought in his kids, Jackie and Ben, to help him run the business. Sales however continued to slide and Scott remains reluctant to let them make important changes to help the business perform better. Marcus Lemonis believes that he can help Coopersburg Sports get its business back on track. There is a lot of money to be made and they could literally knock the ball out of the park.

Episode Main Review.

Marcus arrives at Coopersburg Sports to find a very disorganized facility. Even though there is a fair amount of manufacturing going on, there seemed to be no flow nor process.

In a facility were paints and heavy chemicals are used, Marcus noticed there was no good ventilation. scott-pino-coopersburg-sportsHe meets Scott and gets to know a little bit more about the company and what they do. Scott tells him that the company’s best year was over $4 million but now the company is hovering around $2 million in revenue per year thanks to the poor economy and a major competitor (Louisville Slugger) that came into the market.

Scott shows Marcus his most famous product the mini bat made by an Amish wood worker. He tells Marcus that the bat can be found in all major league sports parks like the Los Angeles Dodgers, the New York Yankees etc.

The relationship Coopersburg Sports has with major league baseball and the fact that it has its products in all the stadiums is the reason Marcus decided to come see the business. This is the breakdown of the mini bat costs to produce versus revenue. It costs Coopersburg Sports around $1.15 including the royalties to produce the bat.

Adding the logo of the baseball franchise costs around 20 cents at the highest level. Scott pays MLB 12% for each bat sold, around 18 cents. The bat sells for around $1.50 giving a profit or around 30-37 cents.

These are very very slim margins for it to be the company’s (300,000 units per year) signature product. Marcus doesn’t like the fact that the bats are painted in-house and he is very interested in squeezing out more profit from this product by bringing in already pre-painted bats. This will save around 10 cents per bat on costs.

If you calculate that Coopersburg Sports sells 300,000 units per year of these bats, that is a cost reduction of around $30,000 per year. Add that to the $12,000 per year in waste/faulty products cost and the savings increase to $42,000. Scott tells Marcus that he inherited the production facility from his dad who ran a tool and handle turning business that supplied bats to major league baseball players.

When a major tool company came on scene, his dads was pushed pout of business. After a chance meeting with the Major League Baseball association, Coopersburg Sports was born to continue the bat creating tradition of the old business. The fact that Scott was able to evolve and turn his dads dying tool and handle business into Coopersburg Sports is a huge success story. However, he will need to evolve once again and branch out into new products to save the business once again says Marcus. coopersburg-sports-old-new-schoolMarcus continues his tour of the business and see something very cool. Scott has rigged up some old HP printers to print on the bats and that is very clever. Marcus is impressed. coopersburg-sports-printers In the next scene we are introduced to daughter Jackie who finds out that there is a shortage of boxes for a big order. jackie-pino-coopersburg-sports Jackie is in charge of collegiate marketing and sales.

She complains to Marcus that the lack of an inventory tracking system as well as a business management program has once again caused a shortage in material. Scott tells Marcus that such software is very expensive and may cost $30,000.

Marcus replies that it is costing them more in lost fulfillment not having the software in place. It looks like Scott is in control of everything and is not willing to delegate to his children roles that will help the business move forward. He is set in his old school ways while his children are dying to bring in fresh new ideas.

Scott takes Marcus to see the bats made by the Amish. This is a very interesting part of the business and a great relationship with the community.

Being based in the heart of Amish Country, Coopersburg Sports is sourcing its bats from the locals and this provides jobs. Scott however owes this bat supplier about $25,000.

The debts on the company is around $700,000. For the year, Coopersburg Sports is likely to generate about $2,000,000 of which just $40,000 will be profit. From this little profit, Scott is servicing the $700,000 loan which will take him a life-time or defaulting if things don’t change.

Marcus understands the situation is bad with this company. He is however very impressed with the relationship with the MLB. He still thinks that the business is focusing too much on just 1 income stream. This causes Coopersburg Sports to be a seasonal business since the MLB has off seasons.

There is a 4th quarter income missing from the business and Scott has lay-off people every year in the slow season because of this. wendy-coopersburg-sports

In the next scene Marcus meets Scott’s wife Wendy and Ben, his son. Ben is a plant manager so Marcus speaks to him about the production system. Ben tells him that the production process is so chaotic and inefficient. ben-pino-coopersburg-sports

He has been trying to change this for a long time but his dad Scott is stuck in his old ways and not is interested. The facility has no off-loading dock so inventory has to be walked from the trucks to the ware house where they are stacked.

Marcus believes that the ware house is not just inefficiently run, it could be a fire hazard as well. coopersburg-sports-warehouse Marcus asks Scott why he continues to stay in that old facility. Scott says Coopersburg Sports won’t be able to afford moving. The current rent is around $1300. Its cheap but as Marcus says, they are tripping over dollars to pick up nickles. With a bigger facility (even with higher rent) and the correct system, Marcus believes that the business can expand and generate more revenue and profit.

Problems/Issues In The Business Found By Marcus

  • Inefficient production facility and system.
  • Lack of modernization.
  • No inventory tracking system.
  • Old production systems.
  • No proper ventilation in the paint facility.
  • Seasonality of the business as it is focused on the Major League Baseball market.
  • Unserviceable debt.
  • Lots of payable owed to the business.

The Deal

So Marcus sits down with the Pino family to talk about the state of the business and the investments made. He looks through the financials and finds out that the business has $285,000 in total payables with over $600,000 in bank debts. The total debts are around 1 million dollars.

Wendy breaks down when Scott says he is tired of the problems. Marcus says that the business has to grow out of its seasonality by adding more product lines and improving its production process. Marcus offers Coopersburg Sports $630,000 to build out a new warehouse facility with new inventory system and pay off the payables. For this he will want 50% of the business.

Scott says that he has worked too hard, too long to give away 50% of his business. He asks Marcus to put more skin in the game. Marcus tells Scott that in the next couple of years, he wont have any return on his investment so the risk is too high for him. Scott counters with 30%.

Marcus says he is willing to go to 30% of the equity if he gets a 3% royalty on all of the products produced by Coopersburg Sports in perpetuity. This way, Marcus is more motivated to increase the sales since he will get a higher return with more sales. Scott agrees and gets the check. coopersburg-sports-marcus-deal

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Totally overhaul the business process.
  • Expand product line to get rid of seasonality
  • Product innovations
  • Get an accounting system in place
  • Get more licensing deals with other leagues and develop new relationships with big retailers.

After The Deal…

As soon as the deal is done Marcus takes the family to see a new facility he believes will be perfect for Coopersburg Sports. Marcus plans to get the facility for a 5 year lease but to get the first year for free.

Using the fact that the building has been empty for 2 years, he negotiates with the owners to get the first year for free. They counter him with 6 months but finally settle at 9 months. The rent is $8,000 dollars per month and represents an increase in rent of $80,400 per year. coopersburg-sports-new-facility With Coopersburg Sports selling over 300,000 bats a year, the greater storage space will permit a higher quantity order and this will in turn reduce the price.

The real difference however will depend on if the Pinos can come up with new products for the company. Scott just can’t see the need to add any other product apart from baseball bats. Looks like Scott wants to compete with giant Luisville Slugger instead on focusing on what can increase his business.

Marcus wants to use the technology and know-how Scott developed over the years to produce new personalized products. He is highly interested in those rigged printers and if they can print on other surfaces and shapes.

In the next scene we see Marcus pitching Scott an INK Credit card from Chase.

As these episode come, I am starting to notice that big companies are placing their products in the profit. The last time it was AT&T for the Unique Salon and Spa episode. I am sure it’s making a lot of money for the production company, but I am not sure it is helping the image the profit show has. marcus-private-jetSo next, Marcus visits Pittsburgh on a business trip and he is shown coming down the steps of a private jet parked outside a hanger just for added effects :).

He decides to visit a MLB park to see the Coopersburg Sports products as well as find new opportunities for more sales. He finds out that the bat Scott claims was in every MLB park wasn’t. Ooops…

So instead of being in all 30 MLB parks, the product is in just 5 of them. This is serious and Marcus is disappointed.

The fact Scott promised him they were in all 30 parks was one of the reasons Marcus offered him a deal in the first place. Once again, Marcus is about to get hustled and the profit lying trend continues. marcus-weaver In the next scene, Marcus visits Jerry Weaver at Weaver wood works, the Amish bat producer for Coopersburg Sports. He wants to see how the bats are made.

Marcus wants to know what else these highly skilled woodworkers can make for him. He finds a waste bat shaped like the leg of a table and asks if that could be formed into a stool.

With MLB branding on it that could make serious money. The ideas are always flowing with Marcus.

scott-criesIn the next very emotional scene, Scott breaks down in front of Marcus and his son Ben. He says the story of how hard he worked to get the MLB license and how much time and sacrifice he made.

This is the reason he holds on tight to his ways, which are mostly old and need to evolve. He now understand that his kids are the new generation and their ideas will be the future for the business.

Conclusion and Updates on the Business

coopersburg-sports-stool3 weeks later, Marcus comes back to find a display with prototypes for 15 new products. Yeeeee, finally someone does what Marcus “advices“.

Scott is now leading the way in this new era and it all looks good. Even the stool idea was realized and the final product looks very cool. There is even a line of MLB teams branded wooden kitchenware.

coopersburg-sports-kitchen-wares In the next scene Marcus takes Scott and wife Wendy to see the construction works going on at the new facility. Marcus even gets to play with some building tools, as always. This new facility coupled with new accounts will eliminate the seasonality.

Next Marcus takes the Pino family to his friend Johnny Moore Bass Pro Shops to pitch their new line of products. After having no results with his male oriented items, Scott passes the pitch over to daughter Jackie and she strikes a chord with the growing female demographic.

The buyers for Bass pro Shop are interested in the kitchen line as well as the branding and personalization technology Coopersburg Sports can provide them. bass-pro-shops Things are really looking bright. Scott is now in full support of his children taking the lead on new products and innovations. The successful Bass pro Shop pitch was a result of this.

We here at theprofitfans.com wish Coopersburg Sports and the Pino family all the best and will be looking forward to adding updates to this post about the business.

I hope you enjoyed this episode with us. Don’t forget to share this review on the social media by clicking the share button floating to the left of this page and choosing your preferred button.

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Thanks again.

Rob

UPDATE: It looks like the company have a new subdivision called Coopersburg Products LLC for their new product lines. Looks like they also have the NFL, NCAA and NASCAR coming on board soon with their licensed merchandise.

I believe this company will explode in revenue very very soon.

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